The Cost of Inaction vs The Cost of Action
Photo by Shane Rounce on Unsplash
I am big into lists because I deplore indecisiveness since I feel there is a way to logically list the pros and cons to any conundrum, IF my gut does not speak up first! Yes, I still am a firm believer that even with a logical list that is perfectly prioritized (ah, my dream), there is still room for the gut reaction that says this is really the time to pause or move forward.
Regardless, it is a decision that is made. Not doing anything is STILL a decision that has a cost. So, what is the cost of inaction vs. the cost of action? We measure cost of action all the time in business, and there are millions of SaaS software companies to help you do so in such detail that this becomes second nature to refer to the new more precise report, However, measuring COI is more about the unknown of what can happen in the future, and like I said, it also has to do with one’s intuition.
In spite of believing in intuition or not, let’s break down all variables of accounting for inaction to make the decision as logical as possible. What are the common variables of inaction?
From the perspective of PR Newswire and technology in the workplace, inaction is generally the lack of technical understanding, lack of clarity around application, and unconvinced value. It is up to the team to know about emerging technology trends that could be beneficial and to take the time to fully suss out. Not every new and innovative technology is for all companies, so taking the time to think about possible missed revenue, cost avoidance, and cost of experience quality by implementing any technological change within a company is a checklist that teams can go through and determine.
COI from a macro perspective
Another way to look at the Cost of Inaction is from a macro perspective for any industry. Many times when companies come to Mind the Gap Services for fractional C-suite help it is because they want to take action before or during the following occurrences happen at a company:
Change of leadership
Teams absorbing change
Fear of making mistakes
They are being proactive and want to make sure there are smooth transitions amongst change in product, services, or leadership. The company may be too much in the details and want a fresh perspective from a veteran in the industry, so it is wise to ask for help.
Mind the Gap Services reviews a set of questions mentioned in this post that helps us know exactly where to focus and to understand how to prioritize:
🔍 What are the KPIs and OKRs that the company has set? This will indicate what tasks and goals that we will prioritize to move the needle.
🔍 When are these goals expected to be met? A huge determinant of the cost of inaction is timing! What is the cost to wait and be left hoping that technology and the status quo will not change?
🔍 What is the plan for the communication for change in processes, management, or pivots that need to be taken to the team and customer? We want NO fear when making changes.
🔍 What keeps the leaders up at night? Oftentimes, people overlook that worry, sleepless nights, deteriorating health, is a cost of inaction. Remember not making a decision is STILL a decision.
From a life or business perspective, a better gauge to assess the cost of inaction is to be proactive to fully understand the choices at hand, what are the pros and cons to the options, and do a quality check. Is this worth the time and effort that it will implement a better quality of life, service or product?
Like what John Liebier notes in LinkedIn, “The line between success and missed opportunity often hinges on the speed and decisiveness of our actions.” So instead of avoiding the steps to understand the cost of inaction, let’s take action swiftly and mindfully to dissect and understand the potential outcomes of our action or inaction.
